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Articles & News
The Role
of the Government in an Islamic Economy
EDITORIAL
While Islam focuses on individual freedom, the government's role
in the economic life has increasingly come under discussion.
These discussions have become ever more important in this era of
Perestroika, when market is replacing more and more state
control. While Islam recognizes the role of markets; freedom of
individuals it also recognizes the possible adverse impact of
the totally unregulated market on the various sections of the
society particularly the poor and the disadvantaged Islamic
Economics literature emphasizes four types of action by
government in the economic life. These are :
Ensuring compliance with the Islamic code of conduct by
individuals through education and whenever necessary, through
coercion;
Maintenance of healthy conditions in the market to ensure its
proper functioning;
Modification of the allocation of resources and distribution of
income affected by the market mechanism by guiding & regulating
it as well as direct intervention and participation in the
process;
Taking positive steps in the field of production and capital
formation to accelerate growth.
We feel that the role of government is an important issue which
deserves considerable research. The present Research Monograph
is a contribution in this direction. Brother Shah Abdul Hannan -
a Fellow of the Islamic Economics Research Bureau, has done
considerable research into Shariah literature. As a result of
this research, he is able to shed new light on the justification
of the role of government in the Islamic economy and its
possible functions.
We are proud to present such an excellent piece of work to the
academician, policy makers and general readers. I am confident
this Research Monograph will arouse enough interest not only at
home but also abroad and will be able to provoke newer thinking
and research.
The Role of the Government in an Islamic Economy
The role of the government in an economy depends on the goals of
that particular economy. Therefore, in this brief article, a
resume on the goal of an Islamic economy will be given before
discussing the possible role of the government in an Islamic
economy.
The principal objective of the Islamic economy, may the whole of
Islamic way of life is to establish 'justice & benevolence' (Adal
& Ihsan). In this respect, Allah has ordained in the Holy Quran:
"Allah commands justice, the doing of good and liberality to
kith & kin and He forbids all shameful deeds and injustice and
rebellion"...(Ayat 90, Sura Nahl).
Allah commanded to establish justice and equity in all aspects
of our life. We have to ensure justice and good conduct not only
in our individual life but also in the socio-economic sphere.
To establish justice in the economic field, all the avenues of
economic exploitation must be closed and an economic system that
will ensure justice and fair play between man and man, between
different classes and regions must be established. Establishing
economic justice in the international arena means : end of
exploitation of one country by another. Now-a-days, the
developed countries exploit the poor countries by giving lower
prices for the raw materials and charging higher prices for the
industrial products. There still exists many other ways of
exploitation. The ultimate objective of the Islamic economy is
to establish social justice. Establishing social justice is the
main issue and for no reason, this primary and basic principle
can be undermined.
The other objectives of the Islamic economy, such as maximum
desirable use of resources, freedom of work and earning, meeting
the requirements of the deprived and establishing human dignity,
etc. are only to assist in achieving the principal and ultimate
objective of the Islamic economy - establishment of economic and
social justice. Therefore, all other economic considerations
should be regarded secondary to the ultimate and principal
objective of establishing social and economic justice. It is not
lawful to allow the operation of such economic principles and
activities that will disturb real and genuine economic and
social justice.
Allah has commanded man to establish justice and benevolence and
he made it obligatory upon every Muslim individual and
organization including Islamic government. No Muslim government
can avoid performing this obligatory duty. Allah subhanuta'ala,
has clearly explained this role of the government in the Holy
Quran in the following words:
"(They are) those who, if we establish them in the land,
establish regular prayer & give regular charity, enjoin the
right(Maruf) and forbid wrong(Munker)." ...(Ayat 41, Sura Hajj).
In this verse, Allah has categorically called upon the Muslims
to do 'maruf' (good or right) and resist 'munker' (evil or
wrong). In order to establish a just economic order, we have to
enforce 'maruf' & prevent 'munker'. These words have a very wide
and comprehensive meaning and covers moral, social, economic and
all other fields. The true implication of applying the principle
of 'maruf' in the economic field means establishment of a just
economy and preventing 'munker' will ensure the blocking of all
the roads and avenues of economic oppression. The state can
legislate necessary laws to ensure social justice and to put an
end to economic exploitation and oppression and this verse of
the Quaran has given Islamic state necessary legal authority to
do that. But the parliament of an Islamic State, will decide on
the basis of Islamic Shariah what sort of economic arrangements
are unjust and wrong. This power of parliament to enact laws
cannot be curtailed in the name of protecting individual rights.
By applying its legal and administrative power, Islamic
government can stop all sorts of unlawful and unjust
profiteering, hoarding, cartel, monopoly, smuggling and other
illegal transactions. It is essential that the government enact
necessary laws to stop such illegal economic activities. We will
also reach the same conclusion as to the power of the Islamic
government in the economic field if we look and judge from
another angle. The three sources of legislation in Islam are
Quran (book of Allah), Sunnah(tradition o the Holy Prophet (sm)
and Ijtihad. There are various method of Ijtihad. Qiyas or
systematic inference is one such important method of Ijtihad.
Other noteworthy principles of Ijtihad are Istihsan or Istislah.
Istihsan is to accept such interpretation of law that will be
bring easiness and Istislah means to legislate for public
interest. Let us analyse why Islamic Shariah has forbidden
interest and gambling and why payment of Zakah (poor due) has
been made obligatory and why Islam has warned against the
concentration of wealth among the rich.
It is clear that Allah has forbidden interest and gambling
considering them extremely harmful for the society from economic
point of view. In the same way from the economic point of view,
He considered Zakah beneficial for the society and made it
obligatory. From this, we can make clear inference (Qiyas), that
Allah dislikes harmful economic transactions and likes
activities that is beneficial and helpful for the society. On
this basis of this Qiyas, we can conclude that the
responsibility of the Islamic government and society is to
disband all harmful economic transactions and activities and to
encourage and establish such economic system that is beneficial.
Imam Ibnul Qayyim has explained the ultimate objective of the
Islamic law in the following words:
"Allah has sent down Prophets and revealed Books to establish
justice which is the fundamental and basic objective of the
whole creation. Everything revealed by Allah proves that the
ultimate goal of revelation is the establishment of a just and
balanced way of life. In whatever way the law may be made it
must aim at establishing justice and fairplay. The most
important thing is the purpose and objective of law and not how
it has been derived or enacted. But Allah by giving us a number
of laws has set examples and reasonable basis for framing and
enacting laws. The lawful government policies and directives
are, therefore, considered a part of Shariah and not a violation
of it. To define them as government policies is only a matter of
terminology, but these are, in fact, a part of Shariah the only
condition is that such government. policies and directives must
be based on justice and fairplay" (Ilam-Al-Muakkin in Vol. III,
P.309-11)
The observation of Imam Ibnul Qayyim is very significant
vis-a-vis enactment of Islamic laws in the present time. The
comment throws light on the religious nature of law enacted by
the Islamic state. From another angle and consideration, we can
discuss the role of government. in Islamic Economy. In Islamic
legal terms 'Fard-e-Kifaya' is that social duty which is not
obligatory upon any individual but which must ncessarily be
accomplished by the society. In this connection Imam Shatibi
wrote:
"Fard-e-Kifaya implies that it is not obligatory upon a
particular person. It is the responsibility of the entire
society. The purpose of "Fard-e-Kifaya' is to ensure continued
accomplishment of those welfare whose absence makes individual
right also insecure. Fulfilment of Fard-e-Kifaya strengthens the
materialisation of Islamic objectives and laws and as such these
are considered very important works. Fard-e-Kifayas are for the
welfare of the entire mankind and therefore, these duties and
responsibilities have not been left on individual shoulder for,
in that case these will become individual obligation (Fard-e-Ain).
Individual cannot perform his own responsibilities properly. In
such a situation to compulsorily shoulder the responsibility of
the family, relations, society and people in general is really
some thing big. Therefore, Allah has given the responsibility of
the matters of common interest on the society. The existence of
State and Society depends following this principle sincerely."
(Al-Muafikat Fi-Usul Al-Shariah, Vol.II, P.168).
Jihad (striving in the way of Allah), preaching of Islam,
arranging education for all, lawful economic activities and
services are part of the Fard-e-Kifaya. In this connection, Imam
Ibn Taimiaya commented:
"According to the opinion of many jurists of Shafi & Hambali
school of thought and Imam Gazelli and Al Jauji, education is
Fard-e-Kifaya because the ecnomic life of a nation cannot
progress without education". (Al-Hisaba Fil Islam, P.17)
It is, therefore, established that the responsibility of the
society and government is to maintain important economic
activities and services.
From the foregoing discussion, it is now clear that Islamic
Shariah has given the government necessary power that are
required to establish justice in the economic field. The Muslim
jurists have also backed and supported this opinion.
After this theoretical discussion, it can now be analysed and
decided as to what can be the practical economic role of an
Islamic government keeping in view the economic condition of the
present day Muslim world.
The primary duty of the Islamic governments in all Muslim
countries is to protect all rights given by Shariah. Islam has
given individual the freedom to earn livelihood. Al Quran
states:
"Allah hath permitted trade" (Baqara:275)
"And when the prayer is finished, then ye may disperse through
the land and seek the bounty of Allah (Juma:10)"
The aforesaid two verses make it clear that freedom of work and
enterprise is one of the fundamental principles of Islam. Islam
has not only given freedom of choice of work but has made work
obligatory to earn livelihood. It is the duty of Islamic
government to protect individual freedom to earn livelihood as
long as that right is not misused. Likewise Islam has given
every individual the right to enjoy whatever wealth he has
earned by legal means and whatever wealth he has received
through Islamic law of inheritance. Al-Quaran clearly states:
"And do not eat up your property: the property of one another
among yourselves wrongfully". (Sura Baqara, Ayat-188)
"O ye who believe, eat not up your property among yourselves
thorough illegal means" (Sura Nisa, Ayat-29)
Al-Quran also states:
"...See they not that we have created cattle for them, out of
what our hands have wrought, so they are their owners." (Sura
Yasin-71)
In this verse of the Quran, it has been mentioned that man is
the owner. Of course, man cannot be absolute owner of any thing.
Absolute ownership belongs to Allah alone. For it has been
stated in other places of the Quran that Allah is the owner of
the heavens and earth. Therefore, the right of man on wealth is
like that of a trustee. Man is only keeper and custodian as the
representative (Caliph) of Allah. He has to enjoy and use wealth
under Allah's command.
Most of the early writers on Islamic economics have emphasised
the predominant position of private property and ownership.
Their position is based on the practice of the early Muslims who
owned private land and business. Most of them were
agriculturists or businessmen. The Hadith literature have
detailed chapters on business and agriculture their permissible
and impermissible forms. So is the position of Fiqh literature
based on the interpretation of the Quran and the Hadith. There
is no disagreement among the early jurists regarding
permissibility of private trade, agriculture of industry. The
Quran has also permitted trade (Sura Baqara:275), has encouraged
earning and exploitation of resources (Sura Juma), has permitted
transfer of property through inheritance (Sura Nisa), and so on
which indicate the permissibility of private property and
'ownership'. Amongst those who have taken this position in
recent time is Maulana Syed Abul A'la Maududi (Masshytat-e-Islam)
and Syed Qutub (Social Justice in Islam). They, however, do not
deny the need for state intervention but they want to keep the
state intervention to the minimum.
There are, however, eminent authorities who have denied the
central position of individual ownership. The martyr Abdul Qadir
Audah deserves quoting at length in the context that "the
society (Jamaat) through its functionaries such as rulers and
counsellors has the authority to organise the ways and means of
utilising wealth. All wealth belongs to Allah but Allah has made
it for the good of the society." The rule in Islam is that all
rights belonging to Allah are for the good of the society which
sits authority over them, and not the individuals.
The society, through the rulers representing it, can, when the
public interest demands, abrogate the individual ownership of
benefits of a property, subject to the condition that a suitable
compensation is to be given to the owner of the benefits
involved.
Though Islam allows ownership without limit, it authorises
society, as they entity for ensuring the rights of Allah and for
organising utilisation of wealth, to subject the individual
ownership of particular kinds of property to limits, when this
is necessitated by public good. This it can do through its
representatives. This may apply to ceilings on agricultural
holdings or to urban property (Al Maal Wal Hakm fil Islam).
It appears that the Muslim scholars have gradually taken a
middle position on the issue of nationalisation. This is because
of two reasons. One is that the theoretical position of Islam
allows flexibility of interpretation on this issue because Islam
has on the one hand emphasised the right of earning and
profession (Baqara-275) sanctity of private property (Nisa-29,
also Prophet's speech in the farewell pilgrimage) and on the
other hand, has emphasised social justice (Nahl-90) right of
others (Hashr-7, Touba-103) and maximum distribution of wealth
(Hashr-7). Second reason for this middle position taken by
Islamic scholars is the experience of nationalisation in the
last sixty years in the world. Nationalisation has helped in
breaking down feudalistic control over land acquired mostly
through unjust or illegal means. It has helped in safeguarding
of the rights of labourers, elimination of poverty and
exploitation in many places and sectors. On the other hand,
nationalisation has generated inefficiency, corruption, low
productivity and loss of social and economic freedom in many
places as revealed in several studies on the subject. As a
result the Muslim economists have taken a cautious approach and
pleads for nationalisation where it is really necessary for
social good.
Looking back through history we find, in early Islamic history,
three kinds of ownership: private, communal and state. The
natural resources like the forest, the mines, the water
resources and the vast tracts of land were owned by the state.
Pastures, graveyards, and such things of need of the local
community were owned by the community and not the individuals.
However, most of the agricultural land, houses small workshops,
cattle wealth, etc. were owned by individuals. The books of
Hadith are full of accounts of individual ownership. Every book
of Hadith and Fiqh has chapters on trade, agriculture, etc.
which clearly establish that individual ownerships were the
standard form of ownership in early Islam. This fact cannot be
brushed aside in any factual assessment of ownership in early
Islamic history as has been the case with some writers.
In this connection, an event in early Islamic history is
important for understanding the issue of public vs. private
ownership in Islam. After the conquest of Syria and Iraq, a big
debate took place among the companions of the Prophet (sm)
whether the newly conquered lands should be distributed among
the soldiers of the victorious army or should be made state
land. Jubair, Bilal, Abdur Rahman Ibn Auf, Salman Farsi and some
others (R) demanded that the conquered property be distributed
among the soldiers. On the other land, Omar, Ali, Muaz Ibn Jabal
(R) thought that this land should be made state lands to raise
revenues for the state and protect the interest of the future
Muslims. After a long drawn debate of 2/3 days, it was decided
in the Majlish-al-Sura that these lands would be made state
lands and the Sahabis accepted the decision. This decision was
implemented. The conquered lands were made state lands and these
were leased out to the former farmers of the land against a
land-tax (Kharaz). The fund generated every year was spent to
run the state machinery and for the welfare of the masses. (Tafhimul
Quran, Tafsir of Suratul Hashr, by Syed Abul A'la Maududi). This
clearly establishes, among others that while there is an option
of making a wealth state property, or private property, the
public interest should be considered the most important factor.
This should be considered equally applicable in similar cases on
the basis of Qiyas (analogical deduction).
In the recent history Islamic states of Iran and Pakistan,
banking, insurance, key industries have been nationalised with
the support of broad sections of the Ulema. In Iran, the
government led by the Ulema pioneered the nationalisation. Even
in Bangladesh, the Islamic parties have not supported any call
for wholesale de-nationalisation of already nationalised key
sectors. This establishes that the Ulema and the Islamic parties
have gradually accepted the need for nationalisation of the key
sectors of the economy for the benefit of the people.
It can be considered at this stage whether nationalisation can
be one of the policy instruments available to an Islamic
government for removing the existing concentration of wealth,
economic injustice and socially detrimental distortions of the
economy. Islam's disapproval of concentration of wealth (Sura
Hashr, Ayat-7) and emphasis on justice (Sura Nahl, Ayat-90) is
well known. It was also the function of the Prophets to remove
all injustice and disequilibrium as has been stated in Sura
Hadid:
"Surely we sent Prophets with clear proofs and sent with them
the book and the balance (of right & wrong) to establish
humanity on balance and justice." (Ayet-25)
In the absence of the Prophets, it is the duty of the Muslims,
particularly the government to establish humanity on balanced
order. If in any given situation, the balance has been
distorted, it is necessary to restore the balance.
Nationalisation with or without compensation (in case of
ill-gotten wealth) can be a policy instrument in the hand of the
Islamic government. However, this should be done with the
consent of the people as may be expressed through the
representatives of the people and with justice. This should not
be done arbitrarily.
ILLEGAL PROPERTY/WEALTH
It is not the obligation of the Islamic government to protect
properties that has been earned through illegal means rather
Islamic government will confiscate properties earned through
illegal means as all illegal means are forbidden. All illegal
means are forbidden (haram) and undesirable (munker) in Islam
and elimination of haram and munker is the principal
responsibility of the Islamic government. There are many
instances in the Islamic history of confiscating wealth earned
through illegal means and restoring and returning them to their
original owners. Amirul Mumineen Omar bin Khattab confiscated
part of the properties of those rulers and governors who made
wealth by using their official position. For the same reason, he
once confiscated half of the wealth of Amr bin Al Aas and Saad
bin Abi Wakkas. (Abu Obaid: Kitabul Amual, page-269).
Omar bin Abdul Aziz after assuming power restored and returned
to its original owners land and properties of others that Bani
Ummaiya confiscated by using force and illegal means(Islam &
Social Security, by Syed Qutb, Bengali version, First edition,
P.516-19). Imam Abu Yousuf wrote,
"My teacher told me that Omar bin Abdul Aziz always wanted to
return to its real owners' wealth confiscated through illegal
means" (Kitabul Kharaj, P.138 by Imam Abu Yousuf).
One of the important duties of the Islamic government,
therefore, will be to recover wealth made through illegal means
and return to its genuine owners or to deposit them to the state
exchequer (Baitul Maal). For the purpose of the checking all
irregularities, an office of the government name "HISBA" was
established, (Al Mawardi : Ahkanus Sultania, Page-208).
We will have to establish such institutions in Muslim world even
today. Such institutes must be headed by man of high integrity.
No ordinary person or organisation can shoulder this
responsibility. The special responsibility of this organisation
will be to ensure whether those who have excess property have
earned these through legal means. The Islamic freedom of
employment and livelihood does not mean that any one can engage
in trade and business harmful for the society. This cannot be
allowed in any circumstance for no economic activity harmful to
the society is lawful in Islamic Shariah. All these fall within
the category of evil and wrong (munker) and therefore, it is the
duty of the government to put an end to such economic activities
altogether Prophet Muhamad (sm) said:
"One who bluffs, he is not my follower" (Bukhari, Muslim)
On the basis of this Prophetic tradition, the great Egyptian
Islamic scholar Syed Qutb commented:
"Islam has totally forbidden bluffing and cheating in trade and
business".. (Syed Qutb: Islam & Social Security, P-309).
Syed Abul Ala Moududi observed:
"It is essential to prohibit all kinds of business which are
injurious and harmful for the common interest" (Syed Abul A'la
Maududi,Islam & Modern Economic Theory, P-182).
'Ihtikar' means hoarding goods in the hope of making excessive
profit. Prophet Muhammad (sm) has forbidden 'Ihtikar' of
foodstuff. Islamic government will therefore, check hoarding
firmly. For this purpose necessary laws have to be enacted. Of
course, it should be ensured that such laws do not create
obstacle or hamper normal business. For the same reason
provision may be kept in the law as to how much quantity of
foodstuff can be stored for how long. The government will fix
this quota from time to time. For example, at the time of
harvesting of agricultural crops permission may be granted to
store bigger quantity for longer period. Again, when the supply
is less, the period of storing and quantity to be stored may be
reduced. Likewise the duration and quantity that can be stored
in case of the essential consumer goods may be decided by law.
PROFITEERING
Islamic jurists in the light of Islamic values opined that
profit to be legal should fulfil some basic conditions:
Profit to be lawful must be obtained without affecting the
operation of market mechanism i.e. forces of demand and supply
be allowed to operate freely. Legal profit is a condition in
which inflow of goods into and out of market is not unnaturally
affected.
Profit is what the entrepreneur gets after giving rightful wages
to labourers working in factories, business houses and in the
agricultural firms.
Profit to be lawful should take into consideration the
purchasing power of the buyers. It is what the entrepreneur gets
after selling goods at reasonable price.
When profit fulfils the aforesaid conditions, it may be termed
as just profit. The government, therefore, must take strong
action against those businessmen and industrialists who want to
influence market demand and supply in an abnormal way, deprive
the labourers from their lawful rights and want to make
excessive profit by exploiting buyers.
This action may be taken in different ways and manner. The
government will formulate laws to protect the just rights of the
labourers and will compel the owners and businessmen to follow
that law. To bring the price down, government should take the
help of normal economic rules and regulations. If it is not
possible to increase local production, then step should be taken
to increase supply by importing more from abroad. There should
be very little restriction on the movement of goods within the
country for it creates artificial scarcity in different parts of
the country and increase the chance of corruption.
PRICE CONTROL
If these measures do not work, Islamic government will have to
take other steps to control prices. It is the fundamental duty
to the government to put an end to the suffering and oppression
of the people. It is not the principle of the Islamic government
to control or regulate price of goods in normal circumstances
for Islam likes and prefers free economic system without any
restriction as long as it does not oppress others. But if the
traders increase price of commodities illegally and if that
results in unbearable suffering of the people then price of
goods must be fixed. This view has been supported by a number of
outstanding Islamic scholars:
"State has the necessary legal power to fix price of goods in
special circumstances and the basis of this legal authority of
the state is the fundamental principle of Islamic Shariah that
it is essential to eradicate suffering of the people. (Ibn Nadim
Hanafi: Al-Isaba wa An Nazair, P:121-129).
Imam Ibn Taimiya in his book 'Al Hisba Fil Islam' has discussed
in great detail in what circumstances price can be regulated. He
concluded his remarks saying,
"If price is not fixed at a reasonable level to fulfil the need
of the general public by the operation of normal principle of
marketing, then price should be fixed for the welfare of the
people with justice, neither more nor less. " (IbnTaimiya: al
Hisaba Fil Islam, P-37)
In the famous book of jurisprudence' Hedaya' it has been stated,
"it is not proper for the government to fix prices. "For Prophet
Muhammad (sm) said, "Do not fix price, for Allah fixes price, He
increases and decreases prices and gives subsistence." It is,
therefore, the responsibility of the buyers and sellers to
determine market prices. Government should not interfere in
this. This can be done only to put an end to the suffering of
the people. (Hedaya).
What is the meaning of 'Allah fixes price'? This only means that
the price is fixed on the basis of operation of market forces.
Commenting on this tradition of the Prophet (sm), Ibn Taimiya
wrote,
"those who interpret this tradition of the Prophet (sm)
concerning the fixation of price, that fixation of price is
forbidden in all circumstances, they are mistaken for it was an
order to meet a special circumstance, not a general order. In
this tradition, it has not been said that some one refused to
sell such goods which he was bound to sell or he refused to do
some thing which he should have done(which was wajib for him) or
he demanded excess price over the normal price. (Al Hisba Fil
Islam, P.29).
The text of the tradition of the Prophet(sm) is this:
"Somebody requested Prophet (sm) to fix the price. In reply
Prophet (sm) said, "Allah fixes price. He increases and
decreases prices and give subsistence. I want to return to Allah
in such a state that no right of any body is due on me". (Abu
Daud & Tirmizi).
Shah Waliullah commenting in this regard, said, "I want to say
that to establish such justice that ' nobody is loser or both
are equally loser' is difficult. For this reason Prophet (sm)
became careful so that rulers do not turn the principle of
fixation of price by a general rule. But even after this if
there is open and clear oppression by the business community
then it is permissible to fix prices, for the destruction of the
country lies in oppression." (Shah Waliullah; Hujjatullahil
Baliga).
MONOPOLY AND CARTEL
Now-a-days, industrialists forms cartel and monopoly and thereby
exploits the people. When the producer have complete control
over the produce, then it is called monopoly. A monopoly
situation may also arise if only a few persons have control over
the produce. When the producers organise in an association to
control production, price, and market, such a situation is
called cartel.
There may be some economic benefit of cartel but generally it is
used to exploit the buyer and the people. By reducing
production, price is increased in an abnormal manner. Most of
the time people have to purchase goods at high prices which has
no relation with the cost of production. This is a clear
oppression, there is no doubt about it. But the monopoly that
exists in the public sector, is different. There is no question
of abnormal increase of price and exploitation of people in the
public sector. Firm law, therefore, has to be enacted to control
all monopoly and cartel with the exception of monopoly in the
public sector and if required existing laws have to be
strengthened. At the same time, other illegal trade like
adulteration of goods must be stopped. No unjust, oppressive and
cheating business should be allowed to continue.
THE LAW OF 'HIJR' (Restrain)
If businessmen and industrialists do not follow these rules and
regulations, then government can take over their property
temporarily in its own hand. In Islamic terminology, this is
called 'Hijr'. Hijr means restraining. According to Islamic
Shariah, 'Hijr' means restraining someone from misusing wealth
and property. (Ibn Kudama: Al-Mughni). The 'Hijr' law has been
derived from the following verse of the Quran:
"To those weak of understanding make not over the property,
which Allah has made a means of support for you, but feed and
clothe them therewith, and speak to them words of kindness and
justice". (Sura Nisa, Ayat-5)
In this verse, the society has been authorised to take over the
lawful ownership of the property from foolish and immature
persons. Of course, the government will perform this
responsibility on behalf of the society. In the eye of the
Islamic law, not only mentally retarded and minor persons are
considered weak of understanding, those who misuse property or
uses to spread unethical and immoral and criminal activities
they may also be considered 'safih' (weak of understanding). In
such circumstances, government can take over factories, business
or other properties from their owners for a limited period under
its control. Of course, court should decide the period of 'hijr'.
According to the Quranic instruction, during the period of 'hijr'
government is bound to give adequate maintenance to the owner of
'hijr' property.
On behalf of the owner, government will make arrangement to run
industries or business. Of course the owner will not be able to
draw any amount of money during the Hijr period (when the hijr
is in force). This arrangement will compel the businessmen or
industrialists to be careful and will restore moral and ethical
atmosphere in the business. For this purpose, government will
have to frame a modern law in the light of 'hijr' principle.
Without this hijr cannot be implemented.
RIGHTS OF WORKERS
One of the prime responsibilities of the Islamic government is
to secure the lawful rights of the workers and take appropriate
steps in this regard. For different reason, this demands special
attention of the government. A big section of the society is
engaged in agriculture, industry and business organisations as
workers and employees. In no way, the interest of the working
force of the society can be ignored. On the other hand, if
owners play with the rights of the workers and employees or the
owners do not pay sufficient wages, there will be large scale
chaos and confusion in the society. Such chaotic condition is
highly undesirable in the eye of Islam. It is, therefore, the
responsibility of the government to oversee so that no chaotic
situation develops in the society.
Regarding workers, the fundamental principle of Islam is that
they are to be treated like brothers and they should be given
maintenance as brothers. It is not lawful in Islam to employ any
one without fixing wages and to get his work and service without
wages. The government, therefore, must ensue that workers get
sufficient wages. In this connection, it is necessary to mention
that labour cannot be compared with other commodities. And it is
not justifiable to fix wages on the basis of market price only.
Whereas other commodities can be separated from its owner,
capacity of doing labour cannot be separated from its owner.
Labourer cannot separate his capacity to work from his body,
then sell and then engage in another work. On the other hand,
every worker has a feeling, emotion and perception which other
commodities have not. In case of workers, the main thing is the
utilization of the total man, not only his labour. Therefore,
labour cannot be purchased and sold like other commodities and
equipments, nor his feeling can be ignored. In no way his human
need and dignity can be neglected. He should be paid justified
and sufficient wages and respect.
Government should fix minimum wages keeping in view these norms
and principles, which the industrialists and businessmen must
follow. For this reason, the government can appoint a permanent
wage commission as it is possible only for a group of experts to
determine proper wage after taking into consideration market
prices. The wage commission will keep constant watch over market
and prices and adjust the wages from time to time.
The government must frame laws incorporating other benefits in
the light of practical circumstances. The labour should have
right to form free trade union and the law should ensure
housing, medicine, bonus and other facilities.
The Islamic government, therefore, should make all out efforts
to develop the economy as a whole and for this purpose modern
technology, organisation, planning must be utilised. But that
will be the long term objective of the Islamic government. Side
by side, every Muslim country must take measures to prevent
exploitation and oppression over workers.
REMEDY OF OPPRESSION
The labour community is being oppressed and exploited in
different countries in different ways and manner. First of all
let us consider the case of industrial workers. The industrial
labour, even today, suffers for lack of job security. They loose
their job for minor reasons or for participating in trade union
activities. Laws concerning the security of employment must,
therefore, be strengthened. The jurisdiction of the labour court
should be wide. The law should have measures so that owners
cannot deprive the workers by declaring 'lay off' easily.
Declaring 'lay off' should not be allowed without proper reason
in any circumstances for that results in decrease in production.
The labour union should have the right to file case in labour
courts against ' layoff' and law should contain such provisions
so that such cases and matters are settled by labour courts very
quickly. Likewise law should have provisions so that the owners
cannot deprive labour community from bonus when they are earning
profit. As paying bonus depends on making profit, the law should
have such provision so that the owners cannot misuse or cannot
show loss by manipulating accounts. Many a time the owners
increase the expenses of the industry by taking excessive
allowances, etc. and show loss and by that way deprive the
workers from bonus. In this way, avenues of exploitation of the
workers must be closed for Allah dislikes both oppression and
oppressor. In some Muslim countries like Bangladesh agricultural
labourers are being exploited in many ways. Islamic government
should fix minimum wages of the agricultural labourers to safe
guard their interest. That should be done by enacting laws.
Without the help of law, such a situation cannot be rectified
and improved. The wages must be fixed in the light of existing
circumstances. If abnormally high wages are fixed, the
agricultural workers might not get any job whatsoever. As a
result, the situation may deteriorate. For this purpose, the
permanent wage commission should take the responsibility. The
wages have to be reviewed and revised from time to time.
The shop workers are also compelled to put hard labour. They
have to work more than 12 hours a day. [ This is the situation
in Bangladesh now] This cannot be justified for such a long
period of work in a day is not good for health. A big section of
the working force is employed in the shops. It should,
therefore, be the responsibility of the Islamic government to
protect their legal and just rights. The wage commission should
also fix their minimum wages like others.
ERADICATION OF POVERTY
It is one of the prime responsibilities of the Islamic
government to eradicate poverty from the society as the Prophet
(sm) said:
'Poverty leads to disbelief'
There is no doubt that poverty is one of the main reasons which
has kept away a large section of the Muslims from understanding
the fundamental message of Islam, in accepting it and in joining
efforts to implement it. They are so problem stricken they have
no time to think about the ideology of Islam. Poverty,
therefore, has to be eradicated from the Muslim world by all
means. For this purpose, Muslim governments must make all out
efforts. Poverty should be identified as number-1 problem.
The unemployed force must be utilised. The over all solution of
the unemployment problem, however, lies in extensive economic
development. For this purpose, government should make full
utilization of both public and private economic initiative. The
role of Islamic government in the economic development should be
more than other governments.
Steps should be taken to rehabilitate destitute old, disabled
sick, children and widows who cannot work. For this purpose,
Islamic government must establish Zakat (collect Zakat) at state
level.
COLLECTION OF ZAKAT
Establishment of Zakat is an obligatory responsibility of the
Islamic government. The most important evidence that Zakat has
to be collected at the state level, is in Ayat 60 of Sura Touba
of the Holy Quran in which it has been stated that a portion of
the money collected has to be spent for meeting the expenses of
the Zakat collectors:
"Alms are for the poor and the needy and those employed to
administer the (funds); for those whose hearts have been
(recently) reconciled (to truth); for those in bondage and in
debt; in the cause of Allah; and for the way farer: (thus is it)
ordained by Allah and Allah is full of knowledge and wisdom (Sura
Tauba, Ayat-60).
Ayat-103 of Sura Tauba also states that:
"Of their goods take alms, That so thou mightiest purify and
sanctify them; And pray on their behalf. Verily thy prayers are
a source of security for them: And Allah is one who hearth and
knoweth."
Zakat law has recently been enacted in Pakistan, Bangladesh and
other some countries. This has facilitated enactment of such law
in any Muslim country.
The responsibility of the Islamic government of our times will
be to re-introduce economic system without interest. One of the
fundamental objectives of Islam is to eliminate interest.
Interest was totally eliminated from the vast Islamic Caliphate
and the economy of the most powerful Abbasi Khilafat between the
eighth and the twelvth century was run without interest.
Fortunately, Islamic Banking and Financial Institutions have
been set up a large numbers recently and the experiment has been
a success. It is expected that such institutions will grow in
number and strength.
The principal responsibilities of the Islamic government have
been discussed in this essay. Islamic government has many other
economic and social responsibilities in the light of Islamic Law
and Values
Written by Shah Abdul Hannan, Editor Dr. Salahuddin Ahmad
Islamic Economics Research Bureau, 60/E, Puranapaltan,
Dhaka-1000, Bangladesh
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